Italy-focused junior Sound Oil announced Wednesday that it is now in a strong funding position ahead of the drilling of its appraisal well on its Nervesa field, onshore northern Italy, after having completed the fifth and sixth tranches of an equity share placing first announced in July 2012 . The firm said that it now has a $12.4 million cash balance with no debt.
Sound estimates that the total remaining expenditure for the Nervesa well will be approximately $1.8 million.
After securing a rig for the drill in October, Sound expects to begin operations soon. Its letter of intent, with LP Drilling, stipulated the rig was to be used between Dec. 1, 2012 and Feb. 1, 2013.
Sound estimates that the Nervesa gas discovery has some 21 billion cubic feet of P50 contingent recoverable resources. Previous testing flowed gas at 3.3 million cubic feet per day from a single sandstone.
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